Questions about progressive, regressive taxes, macroeconomics, help pls

Posted on 2014-04-04 11:04:00 in Economics by ANGELOFLIGHT

could someone pls help me answering these questions, I'd be really thankful if any of you could give me a brief explanation. Thanks in advance.



1) Jamal earns $160,000 per year and Josephina earns $80,000 per year. They both pay the same price to buy the identical automobile and each pays $1,600 in sales tax. In relation to their relative incomes, this is an example of a



a) marginal tax

b) regressive tax

c) proportional tax

d) progressive tax



2) Social Security taxes are



a) regressive because higher income workers don't pay taxes

b) proportional because everyone is charged the same percentage tax rate.

c) regressive because higher income workers pay taxes on smaller percentage of their income

d) progressive because all workers pay the tax



3) Which of the following is an example of a positive economic statement



a) if gas prices fall, consumers should purchase more gas

b) in order to increase employment, the minimum wage should be decreased

c) if payroll taxes are raised, then the social security crisis will be resolved

d) in order to reduce the budget deficit, tax rates should be increased.



4) Which of the following causes a movement along the supply curve?



a) a change in technology

b) a change in the price

c) a change in resource costs

d) all of the above

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